Oil is set for its biggest weekly loss since November, taking a breather after a period of wild trading and a surge in prices that followed Russia’s invasion of Ukraine.
Futures in New York climbed near $107 a barrel on Friday, but are still down more than 7% this week after the market was rocked by news of the U.S. ban on Russian oil imports and what looked to be the first signs of OPEC+ disunity. In two of the four trading sessions this week, Brent crude has swung by the most on record — with intraday swings eclipsing $20 a barrel.
The fallout from the war has rippled through commodity markets from wheat to key fuels such as gasoline and diesel, increasing inflationary pressure around the world. Rystad Energy predicted Brent could soar to an eye-watering $240 a barrel this summer if countries continue to sanction Russian oil imports.